Saudi Ma'aden awards $2.25bn of work to build phosphate project

23 December 2013 16:25 Source:ICIS News

KARACHI (ICIS)--Saudi Arabian Mining Company (Ma'aden) has awarded three contracts worth a combined Saudi riyal (SR) 8.46bn ($2.26bn) to Canadian and Asian companies to build its new phosphate mining and production project, the company said on Monday.

The project in Waad al-Shimal City in the north of the country is a joint venture between Ma'aden, Saudi Basic Industries Corp (Sabic) and Mosaic. Maaden owns 60%, Mosaic 25% and SABIC 15% in the project.

“Maaden has awarded three EPC contracts... the contract for building a sulphuric acid plant and a power generation facility, valued at SR2.87m ($764m), the contract for building a phosphoric acid plant valued at SR3.51bn ($935m) and the contract for building an ore beneficiation plant valued at SR2.09bn ($557m),” Ma’aden said in a statement issued to Saudi stock exchange.

Canada's SNC Lavalin and China's Sinopec Engineering Group have won a SR2.86bn contract to build a power plant and a sulphuric acid plant which has a production capacity of 4.9m tonnes/year, it added.

South Korea's Hanwha Engineering & Construction Co won a contract to build a phosphoric acid plant worth SR3.5bn. The plant will have a production capacity of 1.5m tonnes/year.

China Huanqiu Contracting & Engineering Corp Co won a contract to build an ore beneficiation plant worth SR2.08bn with a production capacity of 5.3m tonnes/year.

“The project partners, together with project financial adviser, are currently finalising finance for the project and expect to secure commitments from financial institutions during December 2013,” Ma’aden said.

“It is expected that funding from these institutions will be available in 2014 and prior to that time the costs of implementing the project will be met from funds provided by the partners in proportion to their shareholding.”

($1 = SR 3.75)

By Aamir Ashraf